May 8 – Trade Plan

There is three reasons why the market is likely to pull back.

1)  VIX  opened and closed above its Bollinger band. From Cobra: 81% chance of market revisiting the Apr 6 lows

2) The RSI made new lows and hasn’t show positive divergence. Down momentum is strong

3) The last down leg exceeded the 100% measured move which usually means another leg is likely.

What’s my plan? I’ll probably adjust slightly on any big bounce to make sure my deltas are zero to slightly positive.

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.